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In order to support businesses hit by the pandemic and lockdown restrictions in Shanghai, on April 25th, 2022, the Shanghai Municipal Taxation Bureau issued a notice on the extension of the tax filing due date for April and May 2022. The specific conditions are as follows:
1. For taxpayers who file tax returns monthly and quarterly, the deadline for tax filing in April and May will be extended to May 31st.
2. Taxpayers, who are affected by the pandemic and still have difficulties in tax returns filing within the tax filing deadlines, may apply to the tax authorities for an extension of filing in accordance with the laws and regulations. Taxpayers can go through the Shanghai Electronic Taxation Bureau (i.e., click "pay tax" – "Tax administrative license" – "Approval for taxpayer extension of declaration") to go through the extension declaration procedures.
However, the system will not automatically modify the deadline for companies that have already filed tax returns before this policy was issued: In such cases, the deadline for April would remain on April 29th. In case a postponement is needed to May 31st, it is necessary to correct the declaration, or cancel and redo the tax filing.
These measures are expected to relax administrative burdens that companies in Shanghai are facing in light of the ongoing lockdown, as well as the closure of physical offices and factories.
At PHC Advisory our team is constantly monitoring the most recent developments and incentives accessible to businesses in China. Feel free to reach us at info@phcadvisory.com to find out more about preferential policies in China that your company could benefit from.
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